MAXIMUS Signs Definitive Agreement to Acquire Policy Studies Inc. for $67 Million Cash

MAXIMUS MMS announced today that it has signed a definitive agreement to acquire Policy Studies Inc., a government health and human services provider. The acquisition is expected to strengthen MAXIMUS' leadership in the administration of health and human services programs across the United States. The acquisition is expected to close on April 30, 2012 and is subject to certain closing conditions. For more than 25 years, Denver-based Policy Studies Inc. has supported government clients in the administration of public programs that include public health insurance programs, such as Medicaid and the Children's Health Insurance Program (CHIP), welfare-to-work services, and child support enforcement. Policy Studies Inc. has approximately 1,300 employees across the United States. The all-cash transaction is valued at approximately $67 million. Policy Studies Inc. had revenue of approximately $137 million for the year ended December 31, 2011. Excluding acquisition-related and one-time charges, MAXIMUS expects the acquisition to be slightly accretive for the remainder of its fiscal 2012 year and fully accretive in fiscal 2013.